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You are here : IndiaNotes >> Research & Analysis >> Industries >> Information Technology >> Research

IT Index Stands Firm in the Demonetization Tempest

Dynamic Equities Pvt Ltd | 21 Dec, 2016  | Follow Author | Add to my Favourites 
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The IT index has given a major move of about 118 per cent from 2013, went from Rs. 5910 made a high of Rs. 12900 in March 2015. After that the IT index gave correction and on 15th Nov, it made a low of Rs. Rs. 9295. It gave a correction of 28 per cent. After correcting 28 per cent, the index showed positive movement and has given a breakout of its month one high which is Rs. 10171 and is currently trading at Rs. 10322.

 

India's IT sector is one that has escaped the depressing impact that demonetization has had on economic activity in the country. India is a huge market and when there is a disruption of this kind, it is for technology companies to fill in the vacuum. Following the November 8 demonetization of high-value currency, the government has initiated a campaign to increase digital transactions in order to move to a "less cash" economy.

 

Admitting that there are visible and hidden costs in reducing cash volume in the economy, the government last week announced a series of 11 measures designed to increase the pace of digital payments. Essentially, the technology sector has been strong in India, it has benefited from demonetization.

 

Most of the stocks has been making new 52 week high in this sector including Geometric, Datamatics, Sonata Software, Trigyn, QuessCorp and Vakrangee.


Top Performers from 22nd Nov when Market Made Low:

  • RS Software: It moved 72 per cent from its low. However, this stock is fundamentally weak stock as the company has been posting negative PAT in every quarter. It is a fundamentally weak stock.

  • Datamatics: Datamatics moved 56 per cent and is has poor fundamentals since it doesn’t have more number of Institutional Holdings. Datamatics share price hit a new high on 20th Dec at Rs. 115.50.

  • Trigyn: Trigyn moved 52 per cent. Trigyn share price settled below 5 per cent at Rs. 120.40. It is one of the multibagger stocks recommended by Dynamic Levels for this quarter.

  • Tanla: Even Tanla moved 50 per cent. Tanla is also one of the top 500 performing stocks.

  • HCL Infosystems: HCL Infosystems has bad fundamentals as the company has reported negative PAT in every quarter. HCL Infosystems share price showed movement of 48 per cent. 

  • Cerebra Integrated: The company reported a low bottomline and displayed a movement of 43 per cent. Cerebra Integrated share price settled 0.42 per cent today on the NSE.

  • Mastek: Mastek share price surged 38 per cent.

  • Allsec Technologies: The company has less institutional holdings and galloped up 38 per cent.

  • D Link: It has a weak bottomline. It moved 35 per cent higher.

  • Sonata Software: The stock witnessed a flight of 35 per cent.

 

Therefore, one can look for the stocks mentioned below which Dynamic Levels recommends in the IT sector:

  • Trigyn

  • Mastek

  • Sonata software

 

Other than the above, the remaining can be risky and speculative. The above three stocks are fundamentally sound and can give you high returns.



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About Dynamic Equities Pvt Ltd

Dynamic Equities Pvt. Ltd. is a a SEBI Registered Investment Advisor and Stock Broker, a leading financial services provider, and one of the major players in the Equity markets in India. With an experience of over 15+ years in Stock Markets and Equity Research, they provide daily updated Support & Resistance of 4200 instruments across 93 exchanges and 56 countries globally. They have an in-house team of over 25 analysts. Under the guidance and mentorship of Mr. Shailesh Saraf, MD of Dynamic Equities Pvt. Ltd., these analysts are dedicately involved in guiding their clients and users of the website www.dynamiclevels.com for trading in the market. Mr. Shailesh Saraf has an experience of over 24 years in the financial market, especially in capital & derivatives market operations, trading, research and management related areas. Dynamic Levels is a website owned by Dynamic Equities Pvt. Ltd. The website can be reached at www.dynamiclevels.com.


For more information please write in to [email protected]


Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.




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